Leaving Insurers On Hook Despite Cesser Clauses

Law360, New York (October 27, 2009, 5:52 PM EDT) -- The U.S. Bankruptcy Court for the Southern District of New York recently prohibited insurers from terminating debtors' insurance contracts based on so-called "cesser" clauses, which provided for the automatic termination of insurance coverage upon the commencement of proceedings under any bankruptcy or insolvency law.